Acquisition

RNS Number:9279Y
Ultimate Leisure Group PLC
25 June 2007


                        ULTIMATE LEISURE GROUP PLC
                      ("Ultimate" or the "Company")

         Acquisition of Living Ventures Limited and The Living Room brand

25th June 2007


Ultimate Leisure Group plc announces the acquisition of Living Ventures Ltd
("Living Ventures") for a total consideration of #28m. Living Ventures owns The
Living Room brand. Founded in 1999, The Living Room is a high quality restaurant
and bar business, operating from 13 sites situated in England and Scotland. This
acquisition represents a further step in Ultimate's stated aim of developing the
food-led side of its business. Following the acquisition, Living Ventures Ltd is
to be renamed The Living Room Ltd.

The consideration is payable in cash and will be funded from the Company's
current financial resources and debt facilities.

Ultimate will not be buying the group of restaurants trading under the
Blackhouse Grill and Est Est Est brands. These will be retained by The
Restaurant Group, Tim Bacon, Jeremy Roberts and other shareholders as defined by
the restructuring of the assets of Living Ventures Ltd that took place
immediately before this acquisition.

In the financial year to 31st March 2007, The Living Room delivered sales of
#29.2m and site EBITDA of #6.050m. Ultimate Leisure will be taking on a number
of key executives from Living Ventures, representing an associated central
overhead of c#850k per annum. The deal represents a cost per site of #2.151m and
4.6 x unit EBITDA. The food mix is considerable at 36% of total sales. The
Living Rooms sales since the end of April have performed well and are +3.2% on a
like for like basis.

Danny Fox, who has played a central part in building The Living Room business,
will be joining Ultimate Leisure as Managing Director of The Living Room. He
will also bring his highly-regarded operations, marketing and training teams.

The acquisition of The Living Room, which follows the recent purchase of the Bel
and the Dragon group of pub restaurants, represents compelling logic for
Ultimate:

*         it is in line with the Company's stated strategy of balancing wet-led 
          income streams with an increased exposure to food income;

*         it provides Ultimate with an established format and brand at the 
          premium end of the market;

*         following completion of the acquisition, Ultimate will benefit from 
          the greater scale of operating over 50 assets;

*         there is the opportunity to increase investment in the existing sites 
          and to grow the total number of Living Rooms from 13 to 30 sites 
          within the next 5 years;

*         it will be earnings enhancing in the first year of ownership;

*         the arrival of The Living Room's strong management team will help to 
          facilitate Ultimate's future growth in the casual dining market.



Ultimate Leisure also announces that KBC Peel Hunt has been appointed as 
nominated adviser and broker with immediate effect.



Mark Jones, Chairman of Ultimate, commented:

"The Living Room is an excellent brand with a very attractive customer offer.
This acquisition represents a big move towards meeting our strategic priorities
and at a sensible price. At the same time, The Living Room will benefit from
much greater investment, particularly as we look to more than double the number
of its sites in the next 5 years".


Contact:

Ultimate Leisure Group
Mark Jones, Executive Chairman                                 0191 261 8800
Craig Bell, Finance Director

KBC Peel Hunt (Nominated Adviser and Broker)
Capel Irwin/Matt Goode                                         020 7418 8900

Financial Dynamics
Ben Foster/Charles Watenphul                                   0207 831 3113







Notes to Editors:



Ultimate Leisure Group plc



Ultimate Leisure Group is a leading premium bar and nightclub operator. Based in
Newcastle, the company operates over 40 sites across the UK including brands
such as Prohibition, Chase and BluBambu. The Group recently completed a major
investment programme to focus the company on the premium end of the segment.
This programme included the improvement of its product ranges and food offer
along with the major refurbishment of the estate. As part of its strategy to
focus on premium quality food led businesses, it recently acquired Bel and the
Dragon, a pub restaurant business with four outlets, from Gourmet Holdings plc
for #8.75m.





The Living Room



Launched in December 1999, The Living Room is an award winning, high quality
restaurant and bar business. Over the last 8 years, Living Room has grown to 13
sites in some of the largest cities across England and Scotland. This includes
sites in London, Manchester, Liverpool, Glasgow and Edinburgh. In 2005, Living
Room won the Flavour Bar Awards - Retail Brand of the Year.












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